The rest are spread out amongst the United Kingdom, Japan, Taiwan, South Korea, and Australia. The company plans to open 13 additional stores by the end of calendar 2013. They also operate 3 e-commerce websites. Costco understanding there competitors and finding out the best way to get the upper hand is keeping up to date social network. Costco recorded 72% of its fiscal 2013 sales in the United States, while 16% came from Canada, and 12% came from elsewhere. How Costco Has Maintained A Steady Growth Rate In The U.S. The main driver is the increasing membership base which has been influenced by a number of factors such as rapid growth of the warehouse industry in the U.S., Costco’s core value proposition, ancillary businesses and strong private label brands. Additionally, its e-commerce strategy and anticipated growth in the online retail market brighten its future outlook. With this key element in the research paper the information gives you the critical thinking aspect to remember about the analysis of Costco Wholesale Corporation in the NASDAQ and also that you should develop a thorough understanding of the factors in the field with its …show more content…
This weakness received a weight of 10% because of the level of significance. This indicates that even though Costco has increased sales by almost 20%, they are not competing at a good enough level in order to keep up with competitors within the industry because most of them are experiencing greater profits.
Rationale of Low Weights (Strengths)
Costco has 400 more locations than competitor BJ’s wholesale Club:
This strength received a weight of 2.5%. It helps Costco acquire more assess to customers and gain a more loyal customer base but it is still not as significant as the other strengths. Costco gains a majority of its competitive advantage from customer loyalty and simplicity of design in there stores which is vital in this industry.
Costco does not have a significant amount of expenses associated with research and development:
The only research and development really associated with Costco is the development of their Kirkland’s Signature brand. Research and development is important to constantly help assure that the industry is performing at its best but since Costco has already established their brand, they currently see no need for their research and development in this industry. With this being said this strength received a 2.5% because it saves them capital from not having the expense while it is a major expense in the